To amend the Federal Election Campaign Act of 1971 to
prohibit foreign influence in Federal elections, to prohibit government
contractors from making expenditures with respect to such elections, and to
establish additional disclosure requirements with respect to spending in such
elections, and for other purposes.

1.

Short
title; table of contents

(a)

Short
title

This Act may be cited
as the Democracy Is Strengthened by
Casting Light On Spending in Elections Act or the
DISCLOSE
Act.

Throughout the history of the United
States, the American people have been rightly concerned about the power of
special interests to control our democratic processes. That was true over 100
years ago when Congress first enacted legislation intended to restrict
corporate funds from being used in Federal elections, legislation that Congress
in 1947 reaffirmed was intended to include independent expenditures. The
Supreme Court held such legislation to be constitutional in 1990 in Austin v.
Michigan Chamber of Commerce (494 U.S. 652) and again in 2003 in McConnell v.
F.E.C. (540 U.S. 93).

(2)

The Supreme Court’s decision in Citizens
United v. Federal Election Commission on January 21, 2010, reverses established
jurisprudence and sound policy to greatly increase the dangers of undue special
interest influence over the democratic process. That decision has opened the
floodgates for corporations and labor unions to spend unlimited sums from their
general treasury accounts to influence the outcome of elections.

(3)

Congress must take
action to ensure that the American public has all the information necessary to
exercise its free speech and voting rights, and must otherwise take narrowly
tailored steps to regulate independent expenditures and electioneering
communications in elections.

(b)

Findings
Relating to Government Contractors

Congress finds and declares as
follows:

(1)

Government contracting is an activity that
is particularly susceptible to improper influence, and to the appearance of
improper influence. Government contracts must be awarded based on an objective
evaluation of how well bidders or potential contractors meet relevant statutory
criteria.

(2)

Independent
expenditures and electioneering communications that benefit particular
candidates or elected officials or disfavor their opponents can lead to
apparent and actual ingratiation, access, influence, and quid pro quo
arrangements. Government contracts should be awarded based on an objective
application of statutory criteria, not based on other forms of inappropriate or
corrupting influence.

(3)

Prohibiting
independent expenditures and electioneering communications by persons
negotiating for or performing government contracts will prevent government
officials involved in or with influence over the contracting process from
influencing the contracting process based, consciously or otherwise, on this
kind of inappropriate or corrupting influence.

(4)

Prohibiting
independent expenditures and electioneering communications by persons
negotiating for or performing government contracts will likewise prevent such
persons from feeling pressure, whether actually exerted by government officials
or not, to make expenditures and to fund communications in order to maximize
their chances of receiving contracts, or to match similar expenditures and
communications made by their competitors.

(5)

Furthermore,
because government contracts often involve large amounts of public money, it is
critical that the public perceive that the government contracts are awarded
strictly in accordance with prescribed statutory standards, and not based on
other forms of inappropriate or corrupting influence. The public’s confidence
in government is undermined when corporations that make significant
expenditures during Federal election campaigns later receive government
funds.

(6)

Prohibiting
independent expenditures and electioneering communications by persons
negotiating for or performing government contracts will prevent any appearance
that government contracts were awarded based in whole or in part on such
expenditures or communications, or based on the inappropriate or corrupting
influence such expenditures and communications can create and appear to
create.

(7)

In these ways,
prohibiting independent expenditures and electioneering communications by
persons negotiating for or performing government contracts will protect the
actual and perceived integrity of the government contracting process.

(8)

Moreover, the
risks of waste, fraud and abuse, all resulting in economic losses to taxpayers,
are significant when would-be public contractors or applicants for public funds
make expenditures in Federal election campaigns in order to affect electoral
outcomes.

(c)

Findings
Relating to Foreign Corporations

Congress finds and declares as
follows:

(1)

The Supreme Court’s decision in the
Citizens United case has provided the means by which United States corporations
controlled by foreign entities can freely spend money to influence United
States elections.

(2)

Foreign
corporations commonly own U.S. corporations in whole or in part, and U.S.
corporate equity and debt are also held by foreign individuals, sovereign
wealth funds, and even foreign nations at levels which permit effective control
over those U.S. entities.

(3)

As recognized in
many areas of the law, foreign ownership interests and influences are exerted
in a perceptible way even when the entity is not majority-foreign-owned.

(4)

The Federal
Government has broad constitutional power to protect American interests and
sovereignty from foreign interference and intrusion.

(5)

Congress has a
clear interest in minimizing foreign intervention, and the perception of
foreign intervention, in United States elections.

(d)

Findings
Relating to Coordinated Expenditures

Congress finds and declares
as follows:

(1)

It has been the consistent view of Congress
and the courts that coordinated expenditures in campaigns for election are no
different in nature from contributions.

(2)

Existing rules
still allow donors to evade contribution limits by making campaign expenditures
which, while technically qualifying as independent expenditures under law, are
for all relevant purposes coordinated with candidates and political parties and
thus raise the potential for corruption or the appearance of corruption.

(3)

Such arrangements
have the potential to give rise to the reality or appearance of corruption to
the same degree that direct contributions to a candidate may give rise to the
reality or appearance of corruption. Moreover, expenditures which are in fact
made in coordination with a candidate or political party have the potential to
lessen the public’s trust and faith in the rules and the integrity of the
electoral process.

(4)

The government
therefore has a compelling interest in making sure that expenditures that are
de facto coordinated with a candidate are treated as such to prevent
corruption, the appearance of corruption, or the perception that some
participants are circumventing the laws and regulations which govern the
financing of election campaigns.

(e)

Findings
Relating to Disclosures and Disclaimers

Congress finds and
declares as follows:

(1)

The American people have a compelling
interest in knowing who is funding independent expenditures and electioneering
communications to influence Federal elections, and the government has a
compelling interest in providing the public with that information. Effective
disclaimers and prompt disclosure of expenditures, and the disclosure of the
funding sources for these expenditures, can provide shareholders, voters, and
citizens with the information needed to evaluate the actions by special
interests seeking influence over the democratic process. Transparency promotes
accountability, increases the fund of information available to the public
concerning the support given to candidates by special interests, sheds the
light of publicity on political spending, and encourages the leaders of
organizations to act only upon legitimate organizational purposes.

(2)

Protecting this compelling interest has
become particularly important to address the anticipated increase in special
interest spending on election-related communications which will result from the
Supreme Court’s decision in the Citizens United case. The current disclosure
and disclaimer requirements were designed for a campaign finance system in
which such expenditures were subject to prohibitions that no longer
apply.

(3)

More rigorous disclosure and disclaimer
requirements are necessary to protect against the evasion of current rules.
Organizations that engage in election-related communications have used a
variety of methods to attempt to obscure their sponsorship of communications
from the general public. Robust disclosure and disclaimer requirements are
necessary to ensure that the electorate is informed about who is paying for
particular election-related communications, and so that the shareholders and
members of these organizations are aware of their organizations’
election-related spending.

(4)

The current lack of accountability and
transparency allow special interest political spending to serve as a private
benefit for the officials of special interest organizations, to the detriment
of the organizations and their shareholders and members.

(f)

Findings
Relating to Campaign Spending by Lobbyists

Congress finds and
declares as follows:

(1)

Lobbyists and lobbying organizations, and
through them, their clients, influence the public decision-making process in a
variety of ways.

(2)

In recent years,
scandals involving undue lobbyist influence have lowered public trust in
government and jeopardized the willingness of voters to take part in democratic
governance.

(3)

One way in which
lobbyists may unduly influence Federal officials is through their or their
clients making independent expenditures or electioneering communications
targeting elected officials.

(4)

Disclosure of such
independent expenditures and electioneering communications will allow the
public to examine connections between such spending and official actions, and
will therefore limit the ability of lobbyists to exert an undue influence on
elected officials.

(g)

Findings
relating to lowest unit charge

Congress finds and declares as
follows:

(1)

The purpose of
the First Amendment is to ensure a robust marketplace of ideas. The government
has a compelling interest in ensuring that Americans have access to this robust
marketplace of ideas through the variety of media supported by the
government.

(2)

In recent years,
the cost of political communication has been artificially inflated as
candidates, parties, interest groups, and commercial advertisers compete for a
dwindling supply of airtime in the periods before elections. Candidates for
Federal election are currently forced to pay higher premiums for
nonpreemptible advertisement time so as not to be replaced by
commercial advertisements in such periods.

(3)

The high cost of
advertising for Federal candidates and their political parties makes it less
likely that Americans will receive information necessary to engage fully in the
electoral process and hear directly from all participants. The high cost of
advertising for Federal candidates and political parties also drives the demand
for large, potentially corrupting contributions to Federal election campaigns
and forces elected officials to spend more time raising money and less time
performing their official responsibilities.

(4)

Lower advertising
costs enhance the ability of candidates to present and the public to receive
information necessary for the effective operation of the democratic process.
Lower advertising costs reduce the potential for corrupting contributions to
Federal election campaigns. Lower advertising costs allow elected officials to
spend more time serving the public interest instead of raising funds to pay for
campaign advertisements.

I

Regulation of
Certain Political Spending

101.

Prohibiting
independent expenditures and electioneering communications by government
contractors

(a)

Prohibition
Applicable to Government Contractors

(1)

Prohibition

(A)

In
general

Section 317(a)(1) of the Federal Election Campaign Act (2
U.S.C. 441c(a)(1)) is amended by striking purpose or use; or and
inserting the following: purpose or use, to make any independent
expenditure, or to disburse any funds for an electioneering communication;
or.

(B)

Conforming
amendment

The heading of section 317 of such Act (2 U.S.C. 441c)
is amended by striking contributions and
inserting contributions, independent expenditures, and electioneering
communications.

(2)

Threshold for
application of ban

Section 317 of such Act (2 U.S.C. 441c) is
amended—

(A)

by redesignating
subsections (b) and (c) as subsections (c) and (d); and

(B)

by inserting after
subsection (a) the following new subsection:

(b)

To the extent that subsection (a)(1)
prohibits a person who enters into a contract described in such subsection from
making any independent expenditure or disbursing funds for an electioneering
communication, such subsection shall apply only if the value of the contract is
equal to or greater than
$50,000.

.

(b)

Application to
recipients of assistance under troubled asset program

Section
317(a) of such Act (2 U.S.C. 441c(a)) is amended—

(1)

by striking
or at the end of paragraph (1);

(2)

by redesignating
paragraph (2) as paragraph (3); and

(3)

by inserting after
paragraph (1) the following new paragraph:

(2)

who enters into negotiations for financial
assistance under title I of the Emergency Economic Stabilization Act of 2008
(12 U.S.C. 5211 et seq.) (relating to the purchase of troubled assets by the
Secretary of the Treasury), during the period—

(A)

beginning on the later of the commencement
of the negotiations or the date of the enactment of the
Democracy Is Strengthened by Casting Light On
Spending in Elections Act; and

(B)

ending with the
later of the termination of such negotiations or the repayment of such
financial assistance;

directly
or indirectly to make any contribution of money or other things of value, or to
promise expressly or impliedly to make any such contribution to any political
party, committee, or candidate for public office or to any person for any
political purpose or use, to make any independent expenditure, or to disburse
any funds for an electioneering communication;
or

.

(c)

Technical
amendment

Section 317 of such
Act (2 U.S.C. 441c) is amended by striking section 321 each
place it appears and inserting section 316.

102.

Application of
ban on contributions and expenditures by foreign nationals to
foreign-controlled domestic corporations

by striking the
period at the end of paragraph (2) and inserting ; or;
and

(3)

by adding at the
end the following new paragraph:

(3)

any corporation
which is not a foreign national described in paragraph (1) and—

(A)

in which a foreign
national described in paragraph (1) or (2) directly or indirectly owns 20
percent or more of the voting shares;

(B)

with respect to
which the majority of the members of the board of directors are foreign
nationals described in paragraph (1) or (2);

(C)

over which one or
more foreign nationals described in paragraph (1) or (2) has the power to
direct, dictate, or control the decision-making process of the corporation with
respect to its interests in the United States; or

(D)

over which one or
more foreign nationals described in paragraph (1) or (2) has the power to
direct, dictate, or control the decisionmaking process of the corporation with
respect to activities in connection with a Federal, State, or local election,
including—

(i)

the making of a
contribution, donation, expenditure, independent expenditure, or disbursement
for an electioneering communication (within the meaning of section 304(f)(3));
or

(ii)

the
administration of a political committee established or maintained by the
corporation.

.

(b)

Certification of
Compliance

Section 319 of such Act (2 U.S.C. 441e) is amended by
adding at the end the following new subsection:

(c)

Certification of
compliance required prior to carrying out activity

Prior
to the making of any contribution, donation, expenditure, independent
expenditure, or disbursement for an electioneering communication by a
corporation during a year, the chief executive officer of the corporation (or,
if the corporation does not have a chief executive officer, the highest ranking
official of the corporation), shall file a certification with the Commission,
under penalty of perjury, that the corporation is not prohibited from carrying
out such activity under subsection (b)(3), unless the chief executive officer
has previously filed such a certification during the
year.

by striking the
period at the end of clause (ii) and inserting ; or; and

(3)

by adding at the
end the following new clause:

(iii)

any payment made by any person
(other than a candidate, an authorized committee of a candidate, or a political
committee of a political party) for a coordinated communication (as determined
under section
324).

.

(b)

Coordinated
communications described

Section 324 of such Act (2 U.S.C. 431 et
seq.) is amended to read as follows:

324.

Coordinated
communications

(a)

Coordinated
Communications Defined

For purposes of this Act, the term
coordinated communication means—

(1)

a covered communication which is made in
cooperation, consultation, or concert with, or at the request or suggestion of,
a candidate, an authorized committee of a candidate, or a political committee
of a political party; or

(2)

any communication that republishes,
disseminates, or distributes, in whole or in part, any broadcast or any
written, graphic, or other form of campaign material prepared by a candidate,
an authorized committee of a candidate, or their agents.

(b)

Covered
communication defined

(1)

In
general

Except as provided in
paragraph (4), for purposes of this subsection, the term covered
communication means, for purposes of the applicable election period
described in paragraph (2), a publicly distributed or disseminated
communication that refers to a clearly identified candidate for Federal office
and is publicly distributed or publicly disseminated during such period.

(2)

Applicable
election period

For purposes of paragraph (1), the
applicable election period with respect to a communication
means—

(A)

in the case of a
communication which refers to a candidate for the office of President or Vice
President, the period—

(i)

beginning with the
date that is 120 days before the date of the first primary election, preference
election, or nominating convention for nomination for the office of President
which is held in any State; and

(ii)

ending with the
date of the general election for such office; or

(B)

in the case of a
communication which refers to a candidate for any other Federal office, the
period—

(i)

beginning with the
date that is 90 days before the earliest of the primary election, preference
election, or nominating convention with respect to the nomination for the
office that the candidate is seeking; and

(ii)

ending with the date of the general
election for such office.

(3)

Special rule for
public distribution of communications involving Congressional
candidates

For purposes of
paragraph (1), in the case of a communication involving a candidate for an
office other than President or Vice President, the communication shall be
considered to be publicly distributed or publicly disseminated only if the
dissemination or distribution occurs in the jurisdiction of the office that the
candidate is seeking.

(4)

Exception

The
term covered communication does not include—

(A)

a communication
appearing in a news story, commentary, or editorial distributed through the
facilities of any broadcasting station, newspaper, magazine, or other
periodical publication, unless such facilities are owned or controlled by any
political party, political committee, or candidate; or

(B)

a communication which constitutes a
candidate debate or forum conducted pursuant to the regulations adopted by the
Commission to carry out section 304(f)(3)(B)(iii), or which solely promotes
such a debate or forum and is made by or on behalf of the person sponsoring the
debate or forum.

(c)

Treatment of
coordination with political parties for communications referring to
candidates

For purposes of
this section, if a communication which refers to any clearly identified
candidate or candidates of a political party or any opponent of such a
candidate or candidates is determined to have been made in cooperation,
consultation, or concert with or at the request or suggestion of a political
committee of the political party but not in cooperation, consultation, or
concert with or at the request or suggestion of such clearly identified
candidate or candidates, the communication shall be treated as having been made
in cooperation, consultation, or concert with or at the request or suggestion
of the political committee of the political party but not with or at the
request or suggestion of such clearly identified candidate or
candidates.

.

(c)

Effective
Date

(1)

In
general

This section and the amendments made by this section
shall apply with respect to payments made on or after the expiration of the
30-day period which begins on the date of the enactment of this Act, without
regard to whether or not the Federal Election Commission has promulgated
regulations to carry out such amendments.

(2)

Transition rule
for actions taken prior to enactment

No person shall be considered to have made
a payment for a coordinated communication under section 324 of the Federal
Election Campaign Act of 1971 (as amended by subsection (b)) by reason of any
action taken by the person prior to the date of the enactment of this Act.
Nothing in the previous sentence shall be construed to affect any determination
under any other provision of such Act which is in effect on the date of the
enactment of this Act regarding whether a communication is made in cooperation,
consultation, or concert with, or at the request or suggestion of, a candidate,
an authorized committee of a candidate, or a political committee of a political
party.

104.

Treatment of
political party communications made on behalf of candidates

(a)

Treatment of
Payment for Communication as Contribution if Made Under control or direction of
Candidate

Section 301(8)(A)
of the Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)(A)), as amended
by section 103(a), is amended—

(1)

by striking
or at the end of clause (ii);

(2)

by striking the
period at the end of clause (iii) and inserting ; or; and

(3)

by adding at the
end the following new clause:

(iv)

any payment by a political committee of a
political party for the direct costs of a communication made on behalf of a
candidate for Federal office who is affiliated with such party, but only if the
communication is controlled by, or made at the direction of, the candidate or
an authorized committee of the
candidate.

.

(b)

Requiring
control or direction by candidate for treatment as coordinated party
expenditure

(1)

In
general

Paragraph (4) of section 315(d) of such Act (2 U.S.C.
441a(d)) is amended to read as follows:

(4)

Special rule for direct costs of
communications

The direct
costs incurred by a political committee of a political party for a
communication made in connection with the campaign of a candidate for Federal
office shall not be subject to the limitations contained in paragraphs (2) and
(3) unless the communication is controlled by, or made at the direction of, the
candidate or an authorized committee of the
candidate.

.

(2)

Conforming
amendment

Paragraph (1) of section 315(d) of such Act (2 U.S.C.
441a(d)) is amended by striking paragraphs (2), (3), and (4) and
inserting paragraphs (2) and (3).

(c)

Effective
Date

This section and the amendments made by this section shall
apply with respect to payments made on or after the expiration of the 30-day
period which begins on the date of the enactment of this Act, without regard to
whether or not the Federal Election Commission has promulgated regulations to
carry out such amendments.

II

Promoting
Effective Disclosure of Campaign-Related Activity

A

Treatment of
Independent Expenditures and Electioneering Communications Made by All
Persons

201.

Independent
expenditures

(a)

Revision of
Definition

Subparagraph (A)
of section 301(17) of the Federal Election Campaign Act of 1971 (2 U.S.C.
431(17)) is amended to read as follows:

(A)

that, when taken
as a whole, expressly advocates the election or defeat of a clearly identified
candidate, or is the functional equivalent of express advocacy because it can
be interpreted by a reasonable person only as advocating the election or defeat
of a candidate, taking into account whether the communication involved mentions
a candidacy, a political party, or a challenger to a candidate, or takes a
position on a candidate’s character, qualifications, or fitness for office;
and

.

(b)

Uniform 24-Hour
Reporting For Persons Making Independent Expenditures Exceeding $10,000 at Any
Time

Section 304(g) of such Act (2 U.S.C. 434(g)) is amended by
striking paragraphs (1) and (2) and inserting the following:

(1)

Independent
expenditures exceeding threshold amount

(A)

Initial
report

A person (including a
political committee) that makes or contracts to make independent expenditures
in an aggregate amount equal to or greater than the threshold amount described
in paragraph (2) shall file a report describing the expenditures within 24
hours.

(B)

Additional
reports

After a person files a report under subparagraph (A), the
person shall file an additional report within 24 hours after each time the
person makes or contracts to make independent expenditures in an aggregate
amount equal to or greater than the threshold amount with respect to the same
election as that to which the initial report relates.

(2)

Threshold amount
described

In paragraph (1), the threshold amount
means—

(A)

during the period
up to and including the 20th day before the date of an election, $10,000;
or

(B)

during the period
after the 20th day, but more than 24 hours, before the date of an election,
$1,000.

.

(c)

Effective
date

(1)

In
general

The amendment made by subsection (a) shall apply with
respect to contributions and expenditures made on or after the expiration of
the 30-day period which begins on the date of the enactment of this Act,
without regard to whether or not the Federal Election Commission has
promulgated regulations to carry out such amendments.

(2)

Reporting
requirements

The amendment made by subsection (b) shall apply
with respect to reports required to be filed after the date of the enactment of
this Act.

202.

Electioneering
communications

(a)

Period During
Which Communications Treated as Electioneering Communications

(1)

Expansion of
period

Section
304(f)(3)(A)(i)(II) of the Federal Election Campaign Act of 1971 (2 U.S.C.
434(f)(3)(A)(i)(II)) is amended to read as follows:

(II)

is made during the period beginning with
the date that is 90 days before the earliest of the primary election,
preference election, or nominating convention with respect to the nomination
for the office that the candidate is seeking and ending with the date of the
general election for such
office.

.

(2)

Effective date;
transition for communications made prior to enactment

The amendment made by paragraph (1) shall
apply with respect to communications made on or after the date of the enactment
of this Act, without regard to whether or not the Federal Election Commission
has promulgated regulations to carry out such amendments, except that no
communication which is made prior to the date of the enactment of this Act
shall be treated as an electioneering communication under section
304(f)(3)(A)(i)(II) of the Federal Election Campaign Act of 1971 (as amended by
paragraph (1)) unless the communication would be treated as an electioneering
communication under such section if the amendment made by paragraph (1) did not
apply.

(b)

Requiring
reports To include information on intended target of
communications

Section 304(f)(2)(D) of such Act (2 U.S.C.
434(f)(2)(D)) is amended—

(1)

by striking
and the names and inserting , the names;
and

(2)

by inserting
, and (if applicable) a statement regarding whether the communications
are intended to support or oppose such candidates before the period at
the end.

B

Expanded
Requirements for Corporations and Other Organizations

211.

Additional
information required to be included in reports on disbursements by covered
organizations

(a)

Independent
expenditure reports

Section 304(g) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 434(g)) is amended by adding at the end the
following new paragraph:

(5)

Disclosure of
additional information by covered organizations making payments for public
independent expenditures

(A)

Additional
information

If a covered organization makes or contracts to make
public independent expenditures in an aggregate amount equal to or exceeding
$10,000 in a calendar year, the report filed by the organization under this
subsection shall include, in addition to the information required under
paragraph (3), the following information:

(i)

If any person made a donation or payment to
the covered organization during the covered organization reporting period which
was provided for the purpose of being used for campaign-related activity or in
response to a solicitation for funds to be used for campaign-related
activity—

(I)

subject to
subparagraph (C), the identification of each person who made such donations or
payments in an aggregate amount equal to or exceeding $1,000 during such
period, presented in the order of the aggregate amount of donations or payments
made by such persons during such period (with the identification of the person
making the largest donation or payment appearing first); and

(II)

if any person
identified under subclause (I) designated that the donation or payment be used
for campaign-related activity with respect to a specific election or in support
of a specific candidate, the name of the election or candidate involved, and if
any such person designated that the donation or payment be used for a specific
public independent expenditure, a description of the expenditure.

(ii)

The
identification of each person who made unrestricted donor payments to the
organization during the covered organization reporting period—

(I)

in an aggregate amount equal to or
exceeding $1,000 during such period, if any of the disbursements made by the
organization for any of the public independent expenditures which are covered
by the report were not made from the organization’s Campaign-Related Activity
Account under section 326; or

(II)

in an aggregate
amount equal to or exceeding $10,000 during such period, if the disbursements
made by the organization for all of the public independent expenditures which
are covered by the report were made exclusively from the organization’s
Campaign-Related Activity Account under section 326 (but only if the
organization has made deposits described in subparagraph (D) of section
326(a)(2) into that Account during such period in an aggregate amount equal to
or greater than $10,000),

presented in
the order of the aggregate amount of payments made by such persons during such
period (with the identification of the person making the largest payment
appearing first).(B)

Treatment of
transfers made to other persons

(i)

In
general

For purposes of the
requirement to file reports under this subsection (including the requirement
under subparagraph (A) to include additional information in such reports), a
covered organization which transfers amounts to another person for the purpose
of making a public independent expenditure by that person or by any other
person, or (in accordance with clause (ii)) which is deemed to have transferred
amounts to another person for the purpose of making a public independent
expenditure by that person or by any other person, shall be considered to have
made a public independent expenditure.

(ii)

Rules for
deeming transfers made for purpose of making expenditures

For purposes of clause (i), in determining
whether a covered organization or any other person who transfers amounts to
another person shall be deemed to have transferred the amounts for the purpose
of making a public independent expenditure, the following rules apply:

(I)

The person shall
be deemed to have transferred the amounts for the purpose of making a public
independent expenditure if—

(aa)

the person making the public independent
expenditure or another person acting on that person’s behalf solicited funding
from the person or from the person to whom the amounts were transferred for
making any public independent expenditures,

(bb)

the
person and the person to whom the amounts were transferred engaged in
substantial discussion (whether written or verbal) regarding the making of
public independent expenditures,

(cc)

the
person or the person to whom the amounts were transferred knew or should have
known of the covered organization’s intent to make public independent
expenditures, or

(dd)

the
person or the person to whom the amounts were transferred made a public
independent expenditure during the election cycle involved or the previous
election cycle (as defined in section 301(25)).

(II)

The person shall
not be deemed to have transferred the amounts for the purpose of making a
public independent expenditure if the transfer was a commercial transaction
occurring in the ordinary course of business between the person and the person
to whom the amounts were transferred.

(C)

Exclusion of
amounts designated for other campaign-related activity

For purposes of subparagraph (A)(i), in
determining the amount of a donation or payment made by a person which was
provided for the purpose of being used for campaign-related activity or in
response to a solicitation for funds to be used for campaign-related activity,
there shall be excluded any amount which was designated by the person to be
used—

(i)

for
campaign-related activity described in clause (i) of section 325(d)(2)(A)
(relating to independent expenditures) with respect to a different election, or
with respect to a candidate in a different election, than an election which is
the subject of any of the public independent expenditures covered by the report
involved; or

(ii)

for any
campaign-related activity described in clause (ii) of section 325(d)(2)(A)
(relating to electioneering communications).

(D)

Exclusion of
amounts paid from separate segregated fund

In determining the amount of public
independent expenditures made by a covered organization for purposes of this
paragraph, there shall be excluded any amounts paid from a separate segregated
fund established and administered by the organization under section
316(b)(2)(C).

(E)

Covered
organization reporting period described

In this paragraph, the
covered organization reporting period is, with respect to a report
filed by a covered organization under this subsection—

(i)

in the case of the first report filed by a
covered organization under this subsection which includes information required
under this paragraph, the shorter of—

(I)

the period which begins on the effective
date of the Democracy Is Strengthened by
Casting Light On Spending in Elections Act and ends on the last
day covered by the report, or

(II)

the 12-month
period ending on the last day covered by the report; and

(ii)

in the case of any subsequent report filed
by a covered organization under this subsection which includes information
required under this paragraph, the period occurring since the most recent
report filed by the organization which includes such information.

(F)

Definitions

In
this paragraph—

(i)

the terms
covered organization, campaign-related activity, and
unrestricted donor payment have the meaning given such terms in
section 325; and

(ii)

the term public independent
expenditure means an independent expenditure for a public communication
(as defined in section
301(22)).

.

(b)

Electioneering
communication reports

Section 304(f) of such Act (2 U.S.C.
434(f)) is amended—

(1)

by redesignating
paragraphs (6) and (7) as paragraphs (7) and (8); and

(2)

by inserting after
paragraph (5) the end the following new paragraph:

(6)

Disclosure of
additional information by covered organizations

(A)

Additional
information

If a covered organization files a statement under
this subsection, the statement shall include, in addition to the information
required under paragraph (2), the following information:

(i)

If any person made a donation or payment to
the covered organization during the covered organization reporting period which
was provided for the purpose of being used for campaign-related activity or in
response to a solicitation for funds to be used for campaign-related
activity—

(I)

subject to
subparagraph (C), the identification of each person who made such donations or
payments in an aggregate amount equal to or exceeding $1,000 during such
period, presented in the order of the aggregate amount of donations or payments
made by such persons during such period (with the identification of the person
making the largest donation or payment appearing first); and

(II)

if any person
identified under subclause (I) designated that the donation or payment be used
for campaign-related activity with respect to a specific election or in support
of a specific candidate, the name of the election or candidate involved, and if
any such person designated that the donation or payment be used for a specific
electioneering communication, a description of the communication.

(ii)

The
identification of each person who made unrestricted donor payments to the
organization during the covered organization reporting period—

(I)

in an aggregate amount equal to or
exceeding $1,000 during such period, if any of the disbursements made by the
organization for any of the electioneering communications which are covered by
the statement were not made from the organization’s Campaign-Related Activity
Account under section 326; or

(II)

in an aggregate amount equal to or
exceeding $10,000 during such period, if the disbursements made by the
organization for all of the electioneering communications which are covered by
the statement were made exclusively from the organization’s Campaign-Related
Activity Account under section 326 (but only if the organization has made
deposits described in subparagraph (D) of section 326(a)(2) into that Account
during such period in an aggregate amount equal to or greater than
$10,000),

presented in
the order of the aggregate amount of payments made by such persons during such
period (with the identification of the person making the largest payment
appearing first).(B)

Treatment of
transfers made to other persons

(i)

In
general

For purposes of the
requirement to file statements under this subsection (including the requirement
under subparagraph (A) to include additional information in such statements), a
covered organization which transfers amounts to another person for the purpose
of making an electioneering communication by that person or by any other
person, or (in accordance with clause (ii)) which is deemed to have transferred
amounts to another person for the purpose of making an electioneering
communication by that person or by any other person, shall be considered to
have made a disbursement for an electioneering communication.

(ii)

Rules for
deeming transfers made for purpose of making communications

For purposes of clause (i), in determining
whether a covered organization or any other person who transfers amounts to
another person shall be deemed to have transferred the amounts for the purpose
of making an electioneering communication, the following rules apply:

(I)

The person shall
be deemed to have transferred the amounts for the purpose of making an
electioneering communication if—

(aa)

the person making the public independent
expenditure or another person acting on that person’s behalf solicited funding
from the person or from the person to whom the amounts were transferred for
making any electioneering communications,

(bb)

the person and the person to whom the
amounts were transferred engaged in substantial discussion (whether written or
verbal) regarding the making of electioneering communications,

(cc)

the
person or the person to whom the amounts were transferred knew or should have
known of the covered organization’s intent to make electioneering
communications, or

(dd)

the person or the person to whom the
amounts were transferred made an electioneering communication during the
election cycle involved or the previous election cycle (as defined in section
301(25)).

(II)

The person shall
not be considered to have transferred the amounts for the purpose of making an
electioneering communication if the transfer was a commercial transaction
occurring in the ordinary course of business between the person and the person
to whom the amounts were transferred.

(C)

Exclusion of
amounts designated for other campaign-related activity

For purposes of subparagraph (A)(i), in
determining the amount of a donation or payment made by a person which was
provided for the purpose of being used for campaign-related activity or in
response to a solicitation for funds to be used for campaign-related activity,
there shall be excluded any amount which was designated by the person to be
used—

(i)

for
campaign-related activity described in clause (ii) of section 325(d)(2)(A)
(relating to electioneering communications) with respect to a different
election, or with respect to a candidate in a different election, than an
election which is the subject of any of the electioneering communications
covered by the statement involved; or

(ii)

for any
campaign-related activity described in clause (i) of section 325(d)(2)(A)
(relating to independent expenditures consisting of a public
communication).

(D)

Covered
organization reporting period described

In this paragraph, the
covered organization reporting period is, with respect to a
statement filed by a covered organization under this subsection—

(i)

in the case of the first statement filed by
a covered organization under this subsection which includes information
required under this paragraph, the shorter of—

(I)

the period which begins on the effective
date of the Democracy Is Strengthened by
Casting Light On Spending in Elections Act and ends on the
disclosure date for the statement, or

(II)

the 12-month
period ending on the disclosure date for the statement; and

(ii)

in the case of any subsequent statement
filed by a covered organization under this subsection which includes
information required under this paragraph, the period occurring since the most
recent statement filed by the organization which includes such
information.

(E)

Definitions

In this paragraph, the terms covered
organization, campaign-related activity, and
unrestricted donor payment have the meaning given such terms in
section
325.

.

212.

Rules regarding
use of general treasury funds by covered organizations for campaign-related
activity

Title III of the
Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) is amended by
adding at the end the following new section:

325.

Special rules
for use of general treasury funds by covered organizations for campaign-related
activity

(a)

Use of Funds for
Campaign-Related Activity

(1)

In
general

Subject to any applicable restrictions and prohibitions
under this Act, a covered organization may make disbursements for
campaign-related activity using—

(A)

amounts paid or
donated to the organization which are designated by the person providing the
amounts to be used for campaign-related activity;

(B)

unrestricted donor
payments made to the organization; and

(C)

other funds of the organization, including
amounts received pursuant to commercial activities in the regular course of a
covered organization’s business.

(2)

No effect on use
of separate segregated fund

Nothing in this section shall be
construed to affect the authority of a covered organization to make
disbursements from a separate segregated fund established and administered by
the organization under section 316(b)(2)(C).

(b)

Restrictions on
Use of Funds for Campaign-Related Activity

(1)

Certification
after receiving notification by donor to not use funds for
activity

If any person who
makes a donation, payment, or transfer to a covered organization (other than
the covered organization) notifies the organization in writing (at the time of
making the donation, payment, or transfer) that the organization may not use
the donation, payment, or transfer for campaign-related activity, not later
than 7 days after the organization receives the donation, payment, or transfer
the organization shall transmit to the person a written certification by the
chief financial officer of the covered organization (or, if the organization
does not have a chief financial officer, the highest ranking financial official
of the organization), under penalty of perjury, that—

(A)

the organization will not use the donation,
payment, or transfer for campaign-related activity; and

(B)

the organization will not include any
information on the person in any report filed by the organization under section
304 with respect to independent expenditures or electioneering communications,
so that the person will not be required to appear in a significant funder
statement or a Top 5 Funders list under section 318(e).

(2)

Exception for
payments made pursuant to commercial activities

Paragraph (1) does not apply with respect
to any payment or transfer made pursuant to commercial activities in the
regular course of a covered organization’s business.

(c)

Certifications
Regarding Disbursements for Campaign-Related Activity

(1)

Certification by
chief executive officer

If,
at any time during a calendar quarter, a covered organization makes a
disbursement of funds for campaign-related activity using funds described in
subsection (a)(1), the chief executive officer of the covered organization (or,
if the organization does not have a chief executive officer, the highest
ranking official of the organization), under penalty of perjury, shall file a
statement with the Commission which contains the following
certifications:

(A)

None of the campaign-related activity for
which the organization disbursed the funds during the quarter was made in
cooperation, consultation, or concert with, or at the request or suggestion of,
any candidate or any authorized committee or agent of such candidate, or
political committee of a political party or agent of any political
party.

(B)

The chief executive officer or highest
ranking official of the covered organization (as the case may be) has reviewed
and approved each statement and report filed by the organization under section
304 with respect to any such disbursement made during the quarter.

(C)

Each statement and report filed by the
organization under section 304 with respect to any such disbursement made
during the quarter is complete and accurate and does not contain an untrue
statement of a material fact.

(D)

All such
disbursements made during the quarter are in compliance with this Act and all
other applicable Federal laws.

(E)

No portion of the
amounts used to make any such disbursements during the quarter is attributable
to funds received by the organization that were restricted by the person who
provided the funds from being used for campaign-related activity pursuant to
subsection (b).

(2)

Application of
electronic filing rules

Section 304(d)(1) shall apply with
respect to a statement required under this subsection in the same manner as
such section applies with respect to a statement under subsection (c) or (g) of
section 304.

(3)

Deadline

The
chief executive officer or highest ranking official of a covered organization
(as the case may be) shall file the statement required under this subsection
with respect to a calendar quarter not later than 15 days after the end of the
quarter.

(d)

Definitions

For purposes of this section, the following
definitions apply:

(1)

Covered
Organization

The term covered organization means any
of the following:

(A)

Any corporation which is subject to section
316(a).

(B)

Any labor
organization (as defined in section 316).

(C)

Any organization described in paragraph
(4), (5), or (6) of section 501(c) of the Internal Revenue Code of 1986 and
exempt from tax under section 501(a) of such Code.

(D)

Any political
organization under section 527 of the Internal Revenue Code of 1986, other than
a political committee under this Act.

(2)

Campaign-Related
Activity

(A)

In
general

The term campaign-related activity
means—

(i)

an independent expenditure consisting of a
public communication (as defined in section 301(22)), a transfer of funds to
another person for the purpose of making such an independent expenditure by
that person or by any other person, or (in accordance with subparagraph (B)) a
transfer of funds to another person which is deemed to have been made for the
purpose of making such an independent expenditure by that person or by any
other person; or

(ii)

an electioneering communication, a transfer
of funds to another person for the purpose of making an electioneering
communication by that person or by any other person, or (in accordance with
subparagraph (B)) a transfer of funds to another person which is deemed to have
been made for the purpose of making an electioneering communication by that
person or by any other person.

(B)

Rule for deeming
transfers made for purpose of campaign-related activity

For purposes of subparagraph (A), in
determining whether a transfer of funds by one person to another person shall
be deemed to have been made for the purpose of making an independent
expenditure consisting of a public communication or an electioneering
communication, the following rules apply:

(i)

The transfer shall
be deemed to have been made for the purpose of making such an independent
expenditure or an electioneering communication if—

(I)

the person making the independent
expenditure or electioneering communication or another person acting on that
person’s behalf solicited funding from the person or from the person to whom
the amounts were transferred for the purpose of making any such independent
expenditures or electioneering communications,

(II)

the person and the person to whom the
amounts were transferred engaged in substantial discussion (whether written or
verbal) regarding the making of such independent expenditures or electioneering
communications,

(III)

the person or
the person to whom the amounts were transferred knew or should have known of
the covered organization’s intent to disburse funds for campaign-related
activity, or

(IV)

the person or the person to whom the
amounts were transferred made such an independent expenditure or electioneering
communication during the election cycle involved or the previous election cycle
(as defined in section 301(25)).

(ii)

The transfer
shall not be deemed to have been made for the purpose of making such an
independent expenditure or an electioneering communication if the transfer was
a commercial transaction occurring in the ordinary course of business between
the person and the person to whom the amounts were transferred.

(3)

Unrestricted
donor payment

The term
unrestricted donor payment means a payment to a covered
organization which consists of a donation or payment from a person other than
the covered organization, except that such term does not include—

(A)

any payment made pursuant to commercial
activities in the regular course of a covered organization’s business;

(B)

any donation or payment which is designated
by the person making the donation or payment to be used for campaign-related
activity or made in response to a solicitation for funds to be used for
campaign-related activity; or

(C)

any donation or
payment made by a person who notifies the organization in writing (at the time
of making the payment) that the organization may not use the donation or
payment for campaign-related
activity.

.

213.

Optional use of
separate account by covered organizations for campaign-related
activity

Title III of the
Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.), as amended by
section 212, is further amended by adding at the end the following new
section:

326.

Optional Use of
Separate Account by Covered Organizations for Campaign-Related
Activity

(a)

Optional Use of
Separate Account

(1)

Establishment of
account

(A)

In
general

At its option, a covered organization described in
section 325 may make disbursements for campaign-related activity using amounts
from a bank account established and controlled by the organization to be known
as the Campaign-Related Activity Account (hereafter in this section referred to
as the Account), which shall be maintained separately from all
other accounts of the organization and which shall consist exclusively of the
deposits described in paragraph (2).

(B)

Mandatory use of
account after establishment

If a covered organization establishes
an Account under this section, it may not make disbursements for
campaign-related activity from any source other than amounts from the
Account.

(C)

Exclusive use of
account for campaign-related activity

Amounts in the Account
shall be used exclusively for disbursements by the covered organization for
campaign-related activity. After such disbursements are made, information with
respect to deposits made to the Account shall be disclosed in accordance with
section 304(g)(5) or section 304(f)(6).

(2)

Deposits
described

The deposits described in this paragraph are deposits
of the following amounts:

(A)

Amounts donated or paid to the covered
organization by a person other than the organization for the purpose of being
used for campaign-related activity, and for which the person providing the
amounts has designated that the amounts be used for campaign-related activity
with respect to a specific election or specific candidate.

(B)

Amounts donated or
paid to the covered organization by a person other than the organization for
the purpose of being used for campaign-related activity, and for which the
person providing the amounts has not designated that the amounts be used for
campaign-related activity with respect to a specific election or specific
candidate.

(C)

Amounts donated or
paid to the covered organization by a person other than the organization in
response to a solicitation for funds to be used for campaign-related
activity.

(D)

Amounts
transferred to the Account by the covered organization from other accounts of
the organization, including from the organization’s general treasury
funds.

(3)

No treatment as
political committee

The establishment and administration of an
Account in accordance with this subsection shall not by itself be treated as
the establishment or administration of a political committee for any purpose of
this Act.

(b)

Reduction in
amounts otherwise available for Account in Response to Demand of General
Donors

(1)

In
general

If a covered
organization which has established an Account obtains any revenues during a
year which are attributable to a donation or payment from a person other than
the covered organization, and if any person who makes such a donation or
payment to the organization notifies the organization in writing (at the time
of making the donation or payment) that the organization may not use the
donation or payment for campaign-related activity, the organization shall
reduce the amount of its revenues available for deposits to the Account which
are described in subsection (a)(3)(D) during the year by the amount of the
donation or payment.

(2)

Exception

Paragraph
(1) does not apply with respect to any payment made pursuant to commercial
activities in the regular course of a covered organization’s business.

(c)

Definitions

In
this section, the terms campaign-related activity and
covered organization have the meaning given such terms in section
325.

Section 318(a) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 441d(a)) is amended by striking for the
purpose of financing communications expressly advocating the election or defeat
of a clearly identified candidate and inserting for an
independent expenditure consisting of a public communication.

(b)

Stand by your ad
requirements

(1)

Maintenance of
existing requirements for communications by political parties and other
political committees

Section 318(d)(2) of such Act (2 U.S.C.
441d(d)(2)) is amended—

(A)

in the heading, by
striking others and inserting
political
committees;

(B)

by striking
subsection (a) and inserting subsection (a) which is paid
for by a political committee (including a political committee of a political
party); and

(C)

by striking
or other person each place it appears.

(2)

Special
disclaimer requirements for certain communications

Section 318 of
such Act (2 U.S.C. 441d) is amended by adding at the end the following new
subsection:

(e)

Communications by others

(1)

In
general

Any communication
described in paragraph (3) of subsection (a) which is transmitted through radio
or television (other than a communication to which subsection (d)(2) applies
because the communication is paid for by a political committee, including a
political committee of a political party) shall include, in addition to the
requirements of that paragraph, the following:

(A)

The individual
disclosure statement described in paragraph (2) (if the person paying for the
communication is an individual) or the organizational disclosure statement
described in paragraph (3) (if the person paying for the communication is not
an individual).

(B)

If the communication is an electioneering
communication or an independent expenditure consisting of a public
communication and is paid for in whole or in part with a payment which is
treated as a disbursement by a covered organization for campaign-related
activity under section 325, the significant funder disclosure statement
described in paragraph (4) (if applicable).

(C)

If the communication is transmitted through
television and is an electioneering communication or an independent expenditure
consisting of a public communication and is paid for in whole or in part with a
payment which is treated as a disbursement by a covered organization for
campaign-related activity under section 325, the Top Five Funders list
described in paragraph (5) (if applicable), unless, on the basis of criteria
established in regulations promulgated by the Commission, the communication is
of such short duration that including the Top Five Funders list in the
communication would constitute a hardship to the person paying for the
communication by requiring a disproportionate amount of the communication’s
content to consist of the Top Five Funders list.

(2)

Individual
disclosure statement described

The individual disclosure
statement described in this paragraph is the following: I am _______,
and I approve this message., with the blank filled in with the name of
the applicable individual.

(3)

Organizational
disclosure statement described

The organizational disclosure
statement described in this paragraph is the following: I am _______,
the _______ of _______, and _______ approves this message.,
with—

(A)

the first blank to
be filled in with the name of the applicable individual;

(B)

the second blank
to be filled in with the title of the applicable individual; and

(C)

the third and
fourth blank each to be filled in with the name of the organization or other
person paying for the communication.

(4)

Significant
funder disclosure statement described

(A)

Statement if
significant funder is an individual

If the significant funder of a
communication paid for in whole or in part with a payment which is treated as a
disbursement by a covered organization for campaign-related activity under
section 325 is an individual, the significant funder disclosure statement
described in this paragraph is the following: I am _______. I helped to
pay for this message, and I approve it., with the blank filled in with
the name of the applicable individual.

(B)

Statement if
significant funder is not an individual

If the significant funder of a
communication paid for in whole or in part with a payment which is treated as a
disbursement by a covered organization for campaign-related activity under
section 325 is not an individual, the significant funder disclosure statement
described in this paragraph is the following: I am _______, the _______
of _______. _______ helped to pay for this message, and _______ approves
it., with—

(i)

the first blank to
be filled in with the name of the applicable individual;

(ii)

the second blank
to be filled in with the title of the applicable individual; and

(iii)

the third,
fourth, and fifth blank each to be filled in with the name of the significant
funder of the communication.

(C)

Significant
funder defined

(i)

Independent
expenditures

For purposes of
this paragraph, the significant funder with respect to an
independent expenditure consisting of a public communication paid for in whole
or in part with a payment which is treated as a disbursement by a covered
organization for campaign-related activity under section 325 shall be
determined as follows:

(I)

If any report filed by any organization
with respect to the independent expenditure under section 304 includes
information on any person who made a payment to the organization in an amount
equal to or exceeding $100,000 which was designated by the person to be used
for campaign-related activity consisting of that specific independent
expenditure (as required to be included in the report under section
304(g)(5)(A)(i)), the person who is identified among all such reports as making
the largest such payment.

(II)

If any report filed by any organization
with respect to the independent expenditure under section 304 includes
information on any person who made a payment to the organization in an amount
equal to or exceeding $100,000 which was designated by the person to be used
for campaign-related activity with respect to the same election or in support
of the same candidate (as required to be included in the report under section
304(g)(5)(A)(i)) but subclause (I) does not apply, the person who is identified
among all such reports as making the largest such payment.

(III)

If any report filed by any organization
with respect to the independent expenditure under section 304 includes
information on any person who made a payment to the organization which was
provided for the purpose of being used for campaign-related activity or in
response to a solicitation for funds to be used for campaign-related activity
(as required to be included in the report under section 304(g)(5)(A)(i)) but
subclause (I) or subclause (II) does not apply, the person who is identified
among all such reports as making the largest such payment.

(IV)

If none of the reports filed by any
organization with respect to the independent expenditure under section 304
includes information on any person (other than the organization) who made a
payment to the organization which was provided for the purpose of being used
for campaign-related activity or in response to a solicitation for funds to be
used for campaign-related activity, but any of such reports includes
information on any person who made an unrestricted donor payment to the
organization (as required to be included in the report under section
304(g)(5)(A)(ii)), the person who is identified among all such reports as
making the largest such unrestricted donor payment.

(ii)

Electioneering
communications

For purposes
of this paragraph, the significant funder with respect to an
electioneering communication paid for in whole or in part with a payment which
is treated as a disbursement by a covered organization for campaign-related
activity under section 325, shall be determined as follows:

(I)

If any report filed by any organization
with respect to the electioneering communication under section 304 includes
information on any person who made a payment to the organization in an amount
equal to or exceeding $100,000 which was designated by the person to be used
for campaign-related activity consisting of that specific electioneering
communication (as required to be included in the report under section
304(f)(6)(A)(i)), the person who is identified among all such reports as making
the largest such payment.

(II)

If any report filed by any organization
with respect to the electioneering communication under section 304 includes
information on any person who made a payment to the organization in an amount
equal to or exceeding $100,000 which was designated by the person to be used
for campaign-related activity with respect to the same election or in support
of the same candidate (as required to be included in the report under section
304(f)(6)(A)(i)) but subclause (I) does not apply, the person who is identified
among all such reports as making the largest such payment.

(III)

If any report filed by any organization
with respect to the electioneering communication under section 304 includes
information on any person who made a payment to the organization which was
provided for the purpose of being used for campaign-related activity or in
response to a solicitation for funds to be used for campaign-related activity
(as required to be included in the report under section 304(f)(6)(A)(i)) but
subclause (I) or subclause (II) does not apply, the person who is identified
among all such reports as making the largest such payment.

(IV)

If none of the reports filed by any
organization with respect to the electioneering communication under section 304
includes information on any person who made a payment to the organization which
was provided for the purpose of being used for campaign-related activity or in
response to a solicitation for funds to be used for campaign-related activity,
but any of such reports includes information on any person who made an
unrestricted donor payment to the organization (as required to be included in
the report under section 304(f)(6)(A)(ii)), the person who is identified among
all such reports as making the largest such unrestricted donor payment.

(5)

Top 5 Funders
list described

With respect
to a communication paid for in whole or in part with a payment which is treated
as a disbursement by a covered organization for campaign-related activity under
section 325, the Top 5 Funders list described in this paragraph is—

(A)

in the case of a disbursement for an
independent expenditure consisting of a public communication, a list of the 5
persons who provided the largest payments of any type which are required under
section 304(g)(5)(A) to be included in the reports filed by any organization
with respect to that independent expenditure under section 304, together with
the amount of the payments each such person provided; or

(B)

in the case of a disbursement for an
electioneering communication, a list of the 5 persons who provided the largest
payments of any type which are required under section 304(f)(6)(A) to be
included in the reports filed by any organization with respect to that
electioneering communication under section 304, together with the amount of the
payments each such person provided.

(6)

Method of
conveyance of statement

(A)

Communications
transmitted through radio

In
the case of a communication to which this subsection applies which is
transmitted through radio, the disclosure statements required under paragraph
(1) shall be made by audio by the applicable individual in a clearly spoken
manner.

(B)

Communications
transmitted through television

In the case of a communication to which
this subsection applies which is transmitted through television, the
information required under paragraph (1)—

(i)

shall appear in
writing at the end of the communication in a clearly readable manner, with a
reasonable degree of color contrast between the background and the printed
statement, for a period of at least 6 seconds; and

(ii)

except in the
case of a Top 5 Funders list described in paragraph (5), shall also be conveyed
by an unobscured, full-screen view of the applicable individual, or by the
applicable individual making the statement in voice-over accompanied by a
clearly identifiable photograph or similar image of the individual.

(7)

Applicable
individual defined

In this subsection, the term applicable
individual means, with respect to a communication to which this
paragraph applies—

(A)

if the communication is paid for by an
individual or if the significant funder of the communication under paragraph
(4) is an individual, the individual involved;

(B)

if the
communication is paid for by a corporation or if the significant funder of the
communication under paragraph (4) is a corporation, the chief executive officer
of the corporation (or, if the corporation does not have a chief executive
officer, the highest ranking official of the corporation);

(C)

if the
communication is paid for by a labor organization or if the significant funder
of the communication under paragraph (4) is a labor organization, the highest
ranking officer of the labor organization; or

(D)

if the
communication is paid for by any other person or if the significant funder of
the communication under paragraph (4) is any other person, the highest ranking
official of such person.

(8)

Other
definitions

In this subsection, the terms campaign-related
activity, covered organization, and unrestricted
donor payment have the meaning given such terms in section
325.

the amount of any independent expenditure
(as defined in section 301(17) of the Federal Election Campaign Act of 1971 (2
U.S.C. 431(17)) equal to or greater than $1,000 made by such person or
organization, and for each such expenditure the name of each candidate being
supported or opposed and the amount spent supporting or opposing each such
candidate;

(H)

the amount of any
electioneering communication (as defined in section 304(f)(3) of such Act (2
U.S.C. 434(f)(3)) equal to or greater than $1,000 made by such person or
organization, and for each such communication the name of the candidate
referred to in the communication and whether the communication involved was in
support of or in opposition to the candidate;
and

.

(b)

Effective
date

The amendments made by this section shall apply with respect
to reports for semiannual periods described in section 5(d)(1) of the Lobbying
Disclosure Act of 1995 that begin after the date of the enactment of this
Act.

D

Filing by Senate
Candidates With Commission

231.

Filing by
Senate candidates with Commission

Section 302(g) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 432(g)) is amended to read as follows:

(g)

Filing with the
commission

All designations, statements, and reports required to
be filed under this Act shall be filed with the
Commission.

.

III

Disclosure by
Covered Organizations of Information on Campaign-Related Activity

301.

Requiring
disclosure by covered organizations of information on campaign-related
activity

Section 325 of the
Federal Election Campaign Act of 1971, as added by section 212, is
amended—

(1)

by redesignating
subsections (c) and (d) as subsections (e) and (f); and

(2)

by inserting after
subsection (b) the following new subsections:

(c)

Disclosures to
Shareholders, Members, and Donors of Information on Disbursements for
Campaign-Related Activity

(1)

Including
information in regular periodic reports

A covered organization which submits
regular, periodic reports to its shareholders, members, or donors on its
finances or activities shall include in each such report the information
described in paragraph (2) with respect to the disbursements made by the
organization for campaign-related activity during the period covered by the
report.

(2)

Information
described

The information described in this paragraph is, for
each disbursement for campaign-related activity—

(A)

the date of the
independent expenditure or electioneering communication involved;

(B)

the amount of the
independent expenditure or electioneering communication involved;

(C)

the name of the
candidate identified in the independent expenditure or electioneering
communication involved, the office sought by the candidate, and (if applicable)
whether the independent expenditure or electioneering communication involved
was in support of or in opposition to the candidate;

(D)

in the case of a
transfer of funds to another person, the information required by subparagraphs
(A) through (C), as well as the name of the recipient of the funds and the date
and amount of the funds transferred;

(E)

the source of such
funds; and

(F)

such other information as the Commission
determines is appropriate to further the purposes of this subsection.

(d)

Public
Dissemination of Certain Information

(1)

Information
included in reports

(A)

Requiring
dissemination

If a covered organization maintains an Internet
site, the organization shall post on such Internet site, in a machine-readable,
searchable, sortable, and downloadable manner and through a direct link from
the homepage of the organization, the following information:

(i)

The information
the organization is required to report under section 304(g)(5)(A) with respect
to public independent expenditures.

(ii)

The information
the organization is required to include in a statement of disbursements for
electioneering communications under section 304(f)(6).

(B)

Deadline;
duration of posting

The
covered organization shall post the information described in subparagraph (A)
not later than 24 hours after the organization files the information with the
Commission under the applicable provision of this Act, and shall ensure that
the information remains on the website until the expiration of the 1-year
period which begins on the date of the election with respect to which the
public independent expenditures or electioneering communications are
made.

(2)

Information on
breakdown of disbursements among types of recipients

(A)

Requiring
dissemination

If a covered
organization maintains an Internet site, the organization shall post on such
Internet site, in a machine-readable, searchable, sortable, and downloadable
manner and through a direct link from the homepage of the organization, the
following information with respect to the aggregate amount of disbursements
made by the organization for campaign-related activity during a calendar
year:

(i)

A
breakdown by political party of the total amount disbursed in support of and in
opposition to candidates of each political party.

(ii)

The total amount
disbursed in support of or opposition to—

(I)

incumbent
candidates;

(II)

candidates
challenging incumbent candidates; and

(III)

candidates for
election to an office for which no incumbent is seeking re-election.

(B)

Deadline;
duration of posting

A covered organization shall post the
information described in subparagraph (A) with respect to a calendar year not
later than the first January 31 which follows that calendar year, and shall
ensure that the information remains on the website until the end of the
calendar year in which the information is
posted.

.

IV

Television Media
Rates

401.

Television media
rates

(a)

Application of
equal opportunities requirement and prohibition of censorship to candidate and
national committees of political parties

(1)

In
general

The matter preceding paragraph (1) of section 315(a) of
the Communications Act of 1934 (47 U.S.C. 315(a)) is amended to read as
follows:

(a)

In
general

If any licensee shall permit any person who is a legally
qualified candidate for any public office or any national committee of a
political party in connection with a campaign of a legally qualified candidate
for Federal office to use a broadcasting station, the licensee shall afford
equal opportunities in the use of such broadcasting station to all other such
candidates for that office or national committees of political parties in
connection with such campaign for such office: Provided, That such licensee
shall have no power of censorship over the material broadcast under the
provisions of this section. No obligation is imposed under this subsection upon
any licensee to allow the use of its station by any such candidate or national
committee. Appearance by a legally qualified candidate or a representative of a
national committee of a political party on behalf of any legally qualified
candidate for Federal office on
any—

.

(2)

Conforming
amendment

Section 315(a)(3) of such Act (47 U.S.C. 315(a)(3)) is
amended by striking candidate and inserting candidate or
representative.

(b)

Reasonable
access To purchase broadcasting time

(1)

Reasonable
access by political parties

Section 312(a)(7) of such Act (47 U.S.C.
312(a)(7)) is amended—

(A)

by striking
reasonable amounts of time and inserting reasonable
amounts of time, including reasonable amounts of time purchased at the lowest
unit charge under section 315(b),;

(B)

by striking
elective; and

(C)

by striking the
period at the end and inserting the following: or by a national
committee of a political party (including a national congressional campaign
committee of a political party) in connection with the campaign of such
candidate..

(2)

Determination

Section
312(c) of such Act (47 U.S.C. 312(c)) is amended by inserting after the second
sentence the following: In determining whether reasonable amounts of
time, including reasonable amounts of time purchased at the lowest unit charge
under section 315(b), have been provided under subsection (a)(7), the
Commission shall examine and consider the time provided by the licensee,
permittee, or person to purchase time, including nonpreemptible time, by
purchasers other than a legally qualified candidate for Federal office on
behalf of his candidacy or by a national committee of a political party
(including a national congressional campaign committee of a political party) in
connection with such campaign.

(c)

Lowest Unit
Charge

(1)

Charges for
candidates for Federal office

Section 315(b) of such Act (47 U.S.C.
315(b)) is amended—

(A)

in paragraph
(1)(A), by striking paragraph (2) and inserting
paragraphs (2) and (3);

(B)

by redesignating
paragraph (2) as paragraph (3); and

(C)

by inserting after
paragraph (1) the following:

(2)

Charges for
candidates for Federal office

(A)

Limitation on
charges

Subject to
subparagraphs (B) and (C), the charges made for the use of any broadcasting
station by any person who is a legally qualified candidate for any Federal
office in connection with the campaign of such candidate for election to such
office, or by a national committee of a political party in connection with such
campaign, shall not exceed—

(i)

subject to
paragraph (3), during the 45 days preceding the date of a primary or primary
runoff election and during the 60 days preceding the date of a general or
special election in which such person is a candidate, the lowest unit charge of
the station for the same amount of time that was offered at any time during the
180 days preceding the date of use; and

(ii)

at any other
time, the charges made for comparable use of such station by other users
thereof.

(B)

Geographic
limitation

The limitation on
charges under subparagraph (A) shall only apply for the use of a broadcasting
station in the media markets that cover the State (or States) in which the
candidate is seeking election to Federal office.

(C)

Eligibility

(i)

In
General

The limitation on charges under subparagraph (A) shall
only apply if, in an election for a Federal office, a covered organization
under section 325 of the Federal Election Campaign Act of 1971 makes
disbursements for electioneering communications in connection with any legally
qualified candidate for Federal office or for independent expenditures in an
aggregate amount of $50,000 or more during a calendar year.

(ii)

Application

In
such circumstances, the limitation on charges under subparagraph (A) shall
apply to all legally qualified candidates for Federal office in such election
and national committees of political parties in connection with such
election.

(iii)

Requirement

In
an election for Federal office in which no covered organization has made the
disbursements described in
clause (i), all legally qualified
candidates in such election shall be entitled to receive the lowest unit charge
described in paragraph (1) for as long as no such disbursements are made in
such election.

(D)

Severability

If the operation of subparagraph (C) is
enjoined by any court of competent jurisdiction, or if subparagraph (C) is held
to be constitutionally insufficient by final judicial decision, then
subparagraph (A) shall take effect immediately without any limitation imposed
by subparagraph
(C).

.

(2)

National
committee charges

Section 315(b)(1) of such Act (47 U.S.C.
315(b)(1)) is amended in the matter preceding subparagraph (A) by striking
office shall and inserting office or by a national
committee of a political party in connection with the campaign of a legally
qualified candidate for Federal office shall.

(3)

Adequate access
at lowest unit charge

Section 315(b) of such Act (47 U.S.C.
315(b)) is amended by adding at the end the following:

(4)

Adequate access
at lowest unit charge

A
licensee shall take all actions necessary to ensure access to the use of a
broadcasting station, in accordance with the requirements under paragraph (2),
to meet the obligations under section 312(a)(7) for the use of such station by
a legally qualified candidate for Federal office on behalf of his candidacy and
by a national committee of a political party in connection with the campaign of
such
candidate.

.

(4)

Conforming
amendment

Section 315(b)(3) of such Act (as redesignated by
paragraph (1)(A)) is amended by striking under paragraph (1)(A)
each place it appears and inserting under paragraph (1)(A) or
(2)(A)(i).

Not later than 24 hours after the date by which the
aggregate amount of disbursements made by a covered organization for
campaign-related activity with respect to a specific election or a specific
candidate (together with the amount of any disbursements contracted to be made
by the organization for such activity) first equals or exceeds $50,000, the
organization shall file a report with the Commission and with the Federal
Communications Commission which states the amount of the disbursements and
identifies the election or candidate involved.

(b)

Definitions

For
purposes of subsection (a), the terms campaign-related activity
and covered organization have the meaning given such terms in
section
325.

.

(d)

Preemption;
Random Audits

Section 315 of
the Communications Act of 1934 (47 U.S.C. 315) is amended—

(1)

by redesignating
subsection (c) as subsection (g);

(2)

by redesignating
subsection (d) as subsection (f); and

(3)

by inserting after
subsection (b) the following:

(c)

Preemption

(1)

In
general

Except as provided in
paragraph (2), a licensee shall not preempt the use of a broadcasting station
by a legally qualified candidate for Federal office or a national committee of
a political party in connection with the campaign of such candidate.

(2)

Circumstances
beyond control of licensee

If
a program to be broadcast by a broadcasting station is preempted because of
circumstances beyond the control of the station, any scheduled use of a
broadcasting station by such candidate or committee scheduled during that
program may also be preempted.

(d)

Random
Audits

(1)

In
general

During the 45 days
preceding a primary election and the 60 days preceding a general election, the
Commission shall conduct random audits of designated market areas to ensure
that each broadcasting station to which this section applies is allocating
broadcast time for legally qualified candidates for Federal office in
accordance with this section and section 312.

(2)

Markets

Each audit conducted under paragraph (1)
shall cover the following markets:

(A)

At least 6 of the
top 50 largest designated market areas.

(B)

At least 3 of the
51–100 largest designated market areas.

(C)

At least 3 of the
101–150 largest designated market areas.

(D)

At least 3 of the
151–210 largest designated market areas.

(3)

Broadcast
Stations

Each random audit
shall include each of the 3 largest television broadcast networks, 1
independent television network, 1 cable network, 1 provider of satellite
services, and 1 radio
network.

.

(e)

Political
file

Section 315(e) of such Act (47 U.S.C. 315(e)) is amended by
adding at the end the following:

(4)

Public Access to
Political File

In making a
record available for public inspection under paragraph (1), a licensee shall
make available on a timely basis on the station’s Web site the record of a
request to purchase broadcast time that is made by or on behalf of a legally
qualified candidate for Federal office, a national committee of a political
party in connection with a campaign for such office, or by a covered
organization under section 325(c) of the Federal Election Campaign Act of 1971
for electioneering communications in connection with any legally qualified
candidate for Federal office or for independent
expenditures.

.

(f)

Definitions

Section
315(g) of such Act (as redesignated by subsection (d)(1)) is amended—

(1)

by striking
For purposes and inserting Definitions.—For
purposes;

(2)

in paragraph (1),
by striking ; and and inserting the following: and a
provider of cable or satellite television service, except that such term does
not include a noncommercial educational broadcast station as defined under
section 397;

(3)

in paragraph (2),
by striking the period at the end and inserting a semicolon; and

(4)

by adding at the
end the following:

(3)

the terms authorized
committee, election, electioneering
communications, Federal office, and independent
expenditure have the meanings given such terms by section 301 of the
Federal Election Campaign Act of 1971 (2 U.S.C. 431);

(4)

the term designated market
area has the meaning given such term in section 122(j)(2)(C) of title
17, United States Code; and

(5)

the term national committee of a
political party includes a national congressional campaign committee of
a political
party.

.

(g)

Stylistic
amendment

Section 315(f) of
such Act (as redesignated by subsection (d)(2)), is amended by striking
The Commission and inserting Regulations.—The
Commission.

V

Other
Provisions

501.

Judicial
review

(a)

Special rules
for actions brought on constitutional grounds

If any action is brought for declaratory or
injunctive relief to challenge the constitutionality of any provision of this
Act or any amendment made by this Act, the following rules shall apply:

(1)

The action shall be filed in the United
States District Court for the District of Columbia, and an appeal from a
decision of the District Court may be taken to the Court of Appeals for the
District of Columbia Circuit.

(2)

A
copy of the complaint shall be delivered promptly to the Clerk of the House of
Representatives and the Secretary of the Senate.

(3)

It shall be the
duty of the United States District Court for the District of Columbia, the
Court of Appeals for the District of Columbia Circuit, and the Supreme Court of
the United States to advance on the docket and to expedite to the greatest
possible extent the disposition of the action and appeal.

(b)

Intervention by
members of congress

In any
action in which the constitutionality of any provision of this Act or any
amendment made by this Act is raised, any member of the House of
Representatives (including a Delegate or Resident Commissioner to the Congress)
or Senate shall have the right to intervene either in support of or opposition
to the position of a party to the case regarding the constitutionality of the
provision or amendment. To avoid duplication of efforts and reduce the burdens
placed on the parties to the action, the court in any such action may make such
orders as it considers necessary, including orders to require intervenors
taking similar positions to file joint papers or to be represented by a single
attorney at oral argument.

(c)

Challenge by
Members of Congress

Any Member of the House of Representatives
(including a Delegate or Resident Commissioner to the Congress) or Senate may
bring an action, subject to the special rules described in subsection (a), for
declaratory or injunctive relief to challenge the constitutionality of any
provision of this Act or any amendment made by this Act.

502.

Severability

If any provision of this Act or amendment
made by this Act, or the application of a provision or amendment to any person
or circumstance, is held to be unconstitutional, the remainder of this Act and
amendments made by this Act, and the application of the provisions and
amendment to any person or circumstance, shall not be affected by the
holding.

503.

Effective
date

Except as otherwise
provided, this Act and the amendments made by this Act shall take effect upon
the expiration of the 30-day period which begins on the date of the enactment
of this Act, and shall take effect without regard to whether or not the Federal
Election Commission has promulgated regulations to carry out such
amendments.

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